Decisions and Macroeconomics: Development and Implementation of a Simulation Game

Geert Woltjer

The Journal of Economic Education, 2005, vol. 36, issue 2, 139-144

Abstract: For many students macroeconomics is very abstract; it is difficult for them to imagine that the theories are fundamentally about the coordination of human decisions. The author developed a simulation game called Steer the Economy that creates the possibility for students to make the decisions of the firms that are implicit in macroeconomic models. The game consists of a computer network where players manage their own company for the equivalent of 150 months. The players make decisions about prices, wages, labor demand, and investment. All players together are the complete production sector of the economy. Consumption, government, and the Central Bank are incorporated in the computer model and can be manipulated by the game leader. The interaction between the player decisions generates fluctuations in, for example, unemployment, inflation, real wages, and investment. Players can increase the profits of their companies in the game by analyzing micro- and macroeconomic dynamics in the game economy. A system of feedback is provided to generate the necessary skills.

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.3200/JECE.36.2.139-144 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jeduce:v:36:y:2005:i:2:p:139-144

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/VECE20

DOI: 10.3200/JECE.36.2.139-144

Access Statistics for this article

The Journal of Economic Education is currently edited by William Walstad

More articles in The Journal of Economic Education from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().